Kaga Electronics Co., Ltd. · TSE:8154

Kaga Electronics — FY2020/3 Earnings Presentation

40 slides from Kaga Electronics's earnings presentation, May 28, 2020

  1. Slide 1: Financial Results Briefing Material for the Fiscal Year ended March 31, 2020

    For Institutional Investors/Analysts KAGA ELECTRONICS Financial Results Briefing Material for the Fiscal Year ended March 31, 2020 加賀電子株式会社 KAGA ELECTRONICS CO., LTD. CO., LTD. TSE 1st section 8154 May 28, 2020

  2. Slide 2: Index

    INDEX  FY2020/3 Full-Year Financial Results P-2～ Summary/Financial Highlights Financial Highlights by Business Segment/ Balance Sheet/Cash Flows  Management Topics P-20～ Response to the Spread of COVID-19 Progress of PMI at Fujitsu Electronics Initiatives to strengthen EMS business Acquisition of

  3. Slide 3: Consolidated Financial Results for the Fiscal Year ended March 31, 2020

    Consolidated Financial Results for the Fiscal Year ended March 31, 2020 Managing Director KAGA ELECTRONICS CO., LTD. Eiji Kawamura 2

  4. Slide 4: Summary of Financial Results for FY2020/3

    Summary of Financial Results for FY2020/3  Significant increase in net sales with contribution to full-year results from the consolidation of Fujitsu Electronics.  Operating income and ordinary income both exceeded the previous forecast and reached record-high levels.  Net income decreased due to

  5. Slide 5: Financial Highlights for FY2020/3

    Financial Highlights for FY2020/3 （million yen） FY2019/3 FY2020/3 FY2020/3 Results Previous forecast Results YoY vs Forecast Net sales 292,779 442,000 443,615 51.5% 0.4% Gross profit 35,546 47,000 47,016 32.3% 0.0% Gross profit margin 12.1% 10.6% 10.6% SG&A 27,976 38,000 37,001 32.3% -2.6% Operating

  6. Slide 6: Financial Results by Business Segment for FY2020/3

    Financial Results by Business Segment for FY2020/3 （million yen） FY2019/3 FY2020/3 Results Results YoY Electronic Net sales 225,598 377,587 67.4% Component Segment income 4,761 7,503 57.6% Information Net sales 44,344 43,466 -2.0% Equipment Segment income 1,906 1,707 -10.4% Net sales 2,876 2,778 -3.

  7. Slide 7: Financial Highlights by Business Segment

    Financial Highlights by Business Segment (Million Yen) Net Sales Segment Income 443,615 Total Total 19,781 YoY： ＋150,853 YoY： +2,444 2,778 vs Forecast：＋51.5% vs Foreca : +32.3% 43,466 Others 10,014 Others YoY ： ー177 YoY： ー38 vs Forecast ： ー0.9% vs Forecast： ー7.8% 292,779 452 Software 236 Software 19

  8. Slide 8: Effect of Fujitsu Electronics conversion to subsidiary

    Effect of Fujitsu Electronics conversion to subsidiary ※In million yen, figures in ( ) are simple sums. Actual figures of Fujitsu Electronics for the previous period are for reference only. Net Sales Gross profit / Gross profit margin Sales increase at Kaga Electronics driven by EMS, while sales at

  9. Slide 9: Financial Highlights: Electronic Component

    Financial Highlights: Electronic Component （million yen） Net sales/Segment income YoY / Kaga Electronics  Net sales ＋151,989million Yen 67.4％up / Fujitsu Electronics  Segment Income +2,741million Yen 57.6％up 377,587 ・ The EMS business made steady progress throughout the year in medical equipment a

  10. Slide 10: Financial Highlights: Information Equipment

    Financial Highlights: Information Equipment （million yen） Net sales/Segment income YoY 500 00 800 0  Net sales ー878million Yen ２.0％down  Segment Income ー198million Yen 10.4％down 44,344 450 00 43,466 700 0 ・ Sales of PCs and PC peripherals were strong to consumer 400 00 600 0 electronics stores, sc

  11. Slide 11: Financial Highlights (3 months)

    Reference Financial Highlights (3 months) （million yen） FY2019/3 Fy2020/3 FY2020/3 4Q Results 3Q Results 4Q Results YoY QoQ Net sales 118,997 108,170 104,813 -11.9% -3.1% Gross profit 11,522 11,474 11,770 2.2% 2.6% Gross profit margin 9.7% 10.6% 11.2% SG&A 9,700 8,982 9,488 -2.2% 5.6% Opearating inc

  12. Slide 12: Financial Results by Business Segment (3 months)

    Reference financial Results by Business Segment (3 months) （million yen） FY2019/3 FY2020/3 FY2020/3 4Q Results 3Q Results 4Q Results YoY QoQ Electronic Net sales 100,704 93,708 84,060 -16.5% -10.3% Components Segment income 981 2,180 1,084 10.5% -50.2% Information Net sales 11,970 9,820 13,677 14.3%

  13. Slide 13: Financial Highlights: Electronic Component (3 months)

    Reference Financial Highlights: Electronic Component (3 months） （Million Yen) Net sales/Segment income YoY  Net sales ー16,644million Yen 16.5％down / Net Sales 120 000 / Segment Income 800 0  Segment + 102million Yen 10.5％up Income 100,704 700 0 93,708 100 000 84,060 600 0 QoQ 800 00  Net sales ー9

  14. Slide 14: Financial Highlights: Information Equipment (3 months)

    Reference Financial Highlights: Information Equipment（3 months） （Million Yen) Net sales/Segment income YoY  Net sales 1,706million Yen 14.3％up / Net Sales  Segment 286million Yen 50.4％up 160 00 300 0 / Segment Income Income 140 00 13,677 250 0 11,970 QoQ 3,856million Yen 39.3％up 120 00 200 0  Net

  15. Slide 15: Balance Sheet Main Items

    Balance Sheet Main Items （Million Yen) Total assets Total liabilities and net assets 213,761 213,761 207,638 207,638 129,501 121,388 Total liabilities 128,755 128,755 182,396 174,331 Current assets 58,123 104,069 84,259 86,250 Total net assets 70,631 Non-current assets 31,364 33,306 24,685 FY2018/3

  16. Slide 16: Balance Sheet Main Items

    Balance Sheet Main Items （Million Yen, Day) Inventories Accounts receivable/Accounts payable 40.7 160 ,000 80. 0 34.9 40. 0 A/R turnover 77.0 77.1 75.2 50, 000 29.4 140 ,000 70. 0 30. 0 Inventory turnover A/P turnover 40,026 120 ,000 65.3 64.6 63.3 60. 0 40, 000 20. 0 101,507 100 ,000 31,908 10. 0 9

  17. Slide 17: Cash and Deposits/Interest Bearing Debt/Cash Flows

    Cash and Deposits/Interest Bearing Debt/Cash Flows （million yen Cash and deposits Cash flows 60, 000 0.43 0.37 0.5 0 （times） 0.13 D/E ratio -0.03 Cash flows from -0.19 0.0 0 50, 000 -0.31 operating activities Net D/E ratio -0.50 40, 000 22,406 -1.00 43,384 Cash and deposits 11,684 10,077 30, 000 35,

  18. Slide 18: Major Business Indicators

    Major Business Indicators （million yen） Equity ratio ROE 54.8% 10.9% 260 ,000 9.5% 7.6% 35.8% 37.7% 40. 0% 210 ,000 20. 0% Total assets 2.7 1.3 Net profit margin 213,761 2.8 160 ,000 0.0 % Financial leverage -20.0% 2.7 110 ,000 207,638 1.8 2.8 -40.0% 60, 000 128,755 Shareholders’ equity 70,556 76,60

  19. Slide 19: Segment disclosure associated with the start of the Medium-Term Management Plan

    Segment disclosure associated with the start of the Medium-Term Reference Management Plan Continuous disclosure based on current segmentation according to legal financial accounting, along with voluntary disclosure based on segmentation in line with the new Medium-Term Management Plan Current segmen

  20. Slide 20: Financial Highlights by Business Segment of the Medium-Term Management Plan

    Financial Highlights by Business Segment of Reference the Medium-Term Management Plan （million yen） FY2019/3 FY2020/3 FY2020/3 Results Previous forecast Results YoY vs Forecsast Electronic Net sales 145,042 290,000 292,905 101.9% 1.0% Componens Segment income 2,278 4,000 3,553 56.0% -11.2% Net sales

  21. Slide 21: Management Topics

    Management Topics President & Representative Director KAGA ELECTRONICS CO., LTD. Ryoichi Kado 20

  22. Slide 22: Response to the Spread of Novel Coronavirus Infection

    Response to the Spread of Novel Coronavirus Infection  The Novel Coronavirus Response Committee was established on February 27. With the safety and security of the lives of all Group employees as our top priority, we have evacuated employees stationed overseas and supported their families. We made

  23. Slide 23: Progress of PMI at Fujitsu Electronics

    Progress of PMI at Fujitsu Electronics  Gross profit margin improved by 0.5 points YoY Improvements in profitability 6.3％ in FY 2019/3 ➡ 6.8％ in FY 2020/3 Good news [Factors] While there was a one-time gain from the closing of Cypress, the sales mix has been improving  SG&A expenses decreased by a

  24. Slide 24: Progress of PMI at Fujitsu Electronics

    Progress of PMI at Fujitsu Electronics  At present, we have received orders and tentative offers from four companies, including an automotive equipment manufacturer and an electronics manufacturer EMS initiatives 96 companies approached ➡ Business negotiations ongoing with 37 companies [Focus point

  25. Slide 25: Initiatives to strengthen EMS Business

    Initiatives to strengthen EMS Business Increasing of Production Strengthening of Strengthening of Capacity Manufacturing Capabilities Engineering Capabilities Acquisition of Towada Pioneer Amata Nakhon 2nd Factory Name: KAGA EMS TOWADA CO., Name: KAGA ELECTRONICS LTD. (THAILAND) CO., LTD. Amata Nakh

  26. Slide 26: Acquisition of EXCEL

    Acquisition of EXCEL Acquisition of EXCEL  April 1, 2020: Assets split following the conversion of EXCEL into a wholly owned Acquisition subsidiary by CI11. scheme  On the same day, a business transfer was conducted and EXCEL was converted into wholly owned subsidiary of Kaga Electronics, along wi

  27. Slide 27: New Initiatives: 5G mobile communication system

    New Initiatives: 5G mobile communication system  Power supplies, heat exchangers, etc. for 5G base stations Electronic  ASICs for millimeter-wave antennas components  Sales of low-noise amplifiers for automotive communication chips (C-V2X modules), etc.  Optical transceivers for 5G cellular netw

  28. Slide 28: New initiatives: Bell (U.S.) Helicopter business

    New initiatives: Bell (U.S.) Helicopter business  Articles of Incorporation amended at 2019 General Meeting of Shareholders to add aircraft and uninhabited airborne vehicles as an objective.  Partnered with eurotec Japan, Inc. to establish an integrated system for procurement, Background and sales

  29. Slide 29: Business environment and outlooks for FY2021/3

    Business environment and outlooks for FY2021/3 ●EMS production bases: Operations are being continued at almost all global production bases Status of BCP ●Japanese sales bases: Telecommuting will be the main focus until May, with plans to return at the Kaga to a normal work schedule from June. Electr

  30. Slide 30: Reference

    Reference 29

  31. Slide 31: Financial Highlights by Business Segment (Net Sales)

    Financial Highlights by Business Segment①（Net Sales） （Million Yen) Net Sales 121,066 Total 118,997 YoY ： ー 14,183 5,097 QoQ ： ー 3,357 5,388 109,564 108,170 895 933 4,412 104,813 9,842 4,185 11,970 437 Others 455 6,085 10,126 YoY ： +696 9,820 990 QoQ ： +1,899 13,677 Software YoY ： +57 59,889 QoQ ： +5

  32. Slide 32: Financial Highlights by Business Segment (Segment Income)

    Financial Highlights by Business Segment②（Segment Income） （Million Yen) Segment Income 3,389 Total YoY ： +461 186 QoQ ： ー209 108 429 Others 2,492 YoY ： +12 QoQ ： ー17 2,282 105 2,282 1,976 236 135 1,850 87 Software 162 226 YoY ： +101 198 1,821 72 QoQ ： +264 1,489 547 75 188 125 474 853 80 Information

  33. Slide 33: Net Sales by Region

    Net Sales by Region （million yen） Net sales YoY  Japan ＋90,279million yen 50.1％up 443,615  North America ＋13,815million yen 105.6％up  Europe ＋10,115million yen102.1％up  Asia ＋36,623million yen 40.9％up 292,779 270,585 [61.0%] Japan 180,306 [61.6%] North America 26,894 [6.1%] 20,019 [4.5%] Europe

  34. Slide 34: Net Sales by Region (3 months)

    Net Sales by Region （3 months） （Million Yen) Net sales YoY  Japan ー4,336million Yen 5.9％Down 118,997  North America ＋236million Yen 3.4％UP 108,170 104,813  Europe ー3,200million Yen 48.0％Down  Asia ー6,881million Yen 21.8％Down 73,947 [62.1%] 65,761 [60.8%] 69,610 [66.4%] Japan QoQ  Japan +3,849mi

  35. Slide 35: Exchange Rate/FOREX Sensitivity

    Exchange Rate/FOREX Sensitivity （Reference） Effect of 1% change Forex FY2019/3 FY2020/3 （Million Yen） Assumption Results Results Ordinary for （Yen） （Yen） Net sales income 2021/3(yen) USD 110.91 108.74 1,680 38 ー THB 3.43 3.52 235 14 ー RMB 16.72 15.78 194 8 ー HKD 14.14 13.91 210 4 ー 34

  36. Slide 36: Memo

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  37. Slide 37: Memo

    <memo> @)k Aca etecTRONICS 36

  38. Slide 38: Memo

    <memo> @)k Aca etecTRONICS 37

  39. Slide 39: Everything we do is for our customers

    “Everything we do is for our customers 20 Kandamatsunagacho, Chiyoda-ku, Tokyo 101-8629 Contact: Investor Relations & Public Relations Office TEL:+81-3-5657-0106 FAX:+81-3-3254-7133 E-mail： webmaster@taxan.co.jp https://www.taxan.co.jp

  40. Slide 40: Forward-looking statements and display method

    ■ Forward-looking statements in these materials are based on information available to management at the time this report was prepared and assumptions that management believes are reasonable. Actual results may differ significantly from these statements for a number of reasons. ■ Display method in th

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